More Advisors Are Outsourcing Investment Management: Here’s Why


There’s a growing trend in the advisor industry toward outsourcing investment management. A Cerulli study revealed that most (54%) CFP professionals now outsource their investment management.

In our own conversations, we see a focus on comprehensive planning driving this trend. Advisors want to minimize time spent in the weeds of portfolio management, allowing them to dedicate more resources to client engagement and advisory roles.

If you’re considering an outsourced investing solution for your own firm, we’re gathering our observations on how successful advisors are approaching integration in a way that compliments the focus of their firms.


Comprehensive Financial Planning’s Impact

The modern advisor has continued to evolve, specifically in the area of value proposition. While many clients still see their advisors as more of a stock picker, advisors have begun placing more emphasis on the need for comprehensive planning.

Investing is still an essential vehicle in financial planning, but the industry has begun to accept the notion that advisors have a much broader focus than just investing. They may be very capable investors, but there are other activities that prove to be more important to serving their clients and growing their revenue.


With Rising Demand Comes Rising Innovation

This shift has led to the development of simpler, more passively oriented TAMPs (turnkey asset management platforms), often utilizing ETFs and focusing on service and technology rather than just investment results​​.

Outsourced investing providers like WealthPlan Group have embraced the needs of the modern advisor, like seamless digital integrations and 1-to-1 investment strategies for specific client needs. New generations of clients are accustomed to hyper-personalized experiences, and modern providers are evolving.

Accordingly, outsourced investing offers advisors a full investment experience beyond general investment actions like rebalancing. Some providers include features such as risk tolerance and new client onboarding to streamline your operations.


It’s About Innovation – Not Just About Scalability

If you generally think of outsourcing your investment management as a tool to expand your investment management bandwidth, that’s still true. It’s often a more cost-effective solution than hiring a new investment manager in-house. That being said, the improvement isn’t just in the volume of investments you can manage – it’s in the variety.

Advisors are now commonly seeking out the outsourced investment model because of the expansion of capabilities they represent. Advisors who leverage them may be able to offer a wider spectrum of vetted investment vehicles than were previously available. They can also work with their investment partner to perform more robust due diligence on investment strategies and vehicles.


The Future of the TAMP Model

Like the rest of the advisor industry, outsourced investing is at a strategic inflection point, needing to transform to serve the modern advisor’s client. The next generation of advisors, coupled with significant generational wealth transfers, presents opportunities for third party investment managers to provide continuity. 

To capitalize, providers need to continuously align with the needs of their advisors. The emphasis on competitive pricing and tailored experiences will largely define the rising providers of the future. The better they support advisors’ success; their role will grow.

At WealthPlan Group, we have sought to provide one of the best-integrated investment solutions in the industry. It gives advisors a high degree of control without the time-consuming tasks of executing investment strategies. To see how our outsourced investment management helps advisors like you grow, learn more below.

Turnkey Asset Management Platform

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